Poverty in Pakistan has reached an alarming level, with the World Bank revealing that nearly one in four Pakistanis now lives below the poverty line.
According to the latest report, the poverty rate has climbed by 7% in the past three years, standing at 25.3% in 2024-25.
Poverty rate on rise since 2022
The World Bank report, released by Country Director for Pakistan Bolormaa Amgaabazar, paints a troubling picture of Pakistan’s economic struggles.
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In 2022, the poverty rate was 18.3%.
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By 2023, it surged to 24.8%.
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In 2024, it rose further to 25.3%.
The report notes that after years of decline, poverty levels began climbing again after 2022, reversing earlier gains.
Trends show reversal of progress
From 2001 to 2015, Pakistan’s poverty rate fell steadily, decreasing by about 3% annually. This progress slowed between 2015 and 2018, with poverty declining only 1% annually.
However, after 2020’s COVID-19 pandemic, and particularly after 2022, the situation worsened. The World Bank also pointed out that no household survey has been conducted after 2018-19, creating data gaps in official reporting.
Income sources and employment patterns
The report highlights the role of income sources in poverty reduction over the years.
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57% of poverty reduction came from non-agricultural income (such as remittances and other sectors).
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18% of poverty reduction was linked to agricultural income.
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Overall, people’s incomes grew by 2–3% between 2011 and 2021.
But the structural weaknesses remain stark. The World Bank notes that 95% of Pakistanis work in the informal sector, and 85% are employed in low-income jobs.
Urbanisation and population divide
The report also highlighted contrasting urbanization figures. According to the World Bank, between 60% to 80% of Pakistan’s population lives in urban areas, whereas official government data places the figure at just 39%.
This urban-rural divide is seen as a critical factor in understanding poverty dynamics across the country.
